Near Field Communication has revolutionised the way payments can be made. But how does it work, and what security measures are in place?

1. NFC Payments:
How they work

2. Near Field Communication has
revolutionised the way payments can
be made…
but how does it work, and what
security measures are in place?

3. An Introduction to NFC payments:
> Near Field Communication (or NFC) payments
present users with a chance to make cashless
payments from associated credit and debit card
accounts.
> The concept of doing so isn’t a million miles away
from that of contactless payments, but using NFC,
you can actually pay for items using your mobile
phone.

4. So how does it work?
> To take it back a few steps, most modern
smartphones can use NFC to communicate with
other phones or digital devices when within a
radius of around ten centimetres (almost similar
to how bluetooth has been used in the past).
> This communication can be synced with credit
cards, meaning it’s possible to pay for items
simply by holding your phone near suitable
terminals.

5. Paytag
> PayTag which has recently been launched by
Barclaycard, is probably the most widely used
system using NFC technology in the UK just now.
> A PayTag is basically a sticker that’s fitted onto
the back of a mobile phone, which uses NFC to
transmit information from Barclaycard credit
card accounts to contactless payment terminals.

6. What are the benefits?
> Well, for one it’s a lot quicker and easier than
fiddling about with cash or even a card – the
transaction is literally over in seconds.
> Secondly, you don’t need to fiddle about with
a PIN, or find yourself in a position where you’re
stuck because you’ve forgotten about it.

7. But is that safe?
> Yes, it’s as safe as any other form of payment,
and you’ve got the same 100% level of fraud
protection as you’d get on any other card.
> If you lose your mobile, you just have to treat
it like you would losing your wallet or your credit
card – phone up and report it as missing as soon
as possible.

8. So where can I use it?
> In more places than you think – huge High
Street names like Boots, WH Smith and Tesco
are using the service, and fast food outlets like
McDonalds, Subway and Pret are also embracing
it.
> In fact, by the end of the coming year there
will be 150,000 contactless terminals across the
country – you’ll even be able to use it on the
London Underground.

9. Will NFC take over from
traditional payments?
> Some people are certainly hoping so – it is
pretty convenient after all.
> The future is obviously unwritten, but previous
research has indicated that £3 billion worth of
purchases will be make through mobiles by 2016
in Britain alone. Pretty exciting stuff!

10. Image: Vernieman